Answered

Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: Over-----But Not Over-----Tax Rate $0............$43,850..............15% $43,850.....$105,950.............??? $105,950....$361,450............31% If the total personal income tax they pay is $58,074, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)?
a. 21%
b. 24%
c. 25%
d. 225
e. 23%

Answer :

abiolataiwo2015

Answer:

a. 21%

Explanation:

Felix and Freddie

Tax paid for first will be :

$43,850 ×15%

=$6,577.5

Taxable income $124,050

($230,000-$105,950)

Taxable payable $38,455.5

($124,050*31%)

Remaining tax payable $13,041

($58,074-$6,577.5-$38,455.5)

÷

Remaining taxable income $62,100

($105,950-$43,850)

Tax rate between $43,850 and 105,950 will be:

$13,041÷$62,100

=0.21×100

=21%

Other Questions